Putin takes rare step as Russia claims new Ukraine's financial targets

Russian President Vladimir Putin has signed a law that provides comprehensive regulation of cryptocurrencies in the country for the first time, state-run news agency TASS reported on Aug. 4.

It establishes operational frameworks for crypto exchanges, digital depositories, and market participants and defines conditions for crypto investors.

Related: Trump makes bold claim on U.S. dollar

The law not only governs the organization, accounting, and custody of cryptocurrencies, but it also regulates crypto mining, the issuance and circulation of digital rights, and the activities of information system operators issuing digital financial assets (DFAs).

Retail (non-qualified) investors can buy the most liquid cryptocurrencies capped at 300,000 rubles ($3,700) annually per intermediary. Qualified investors have no such restrictions.

Though crypto exchanges can operate without registration until July 1, 2027, they will need to register with a special registry and a self-regulatory organization to keep offering their activities. They also need to operate with a minimum equity requirement of 15 million rubles ($185,200).

However, clearing houses can execute transactions without registration and without involving a broker, given it is necessary to fulfill obligations to clearing participants or to settle defaults.

The law restricts the use of cryptocurrencies as legal tender, so they cannot be used to make payments. However, settlements under foreign trade contracts between residents and non-residents are allowed.

The core provisions of the law will take effect on Sep. 1, 2026. The law will be fully implemented by Sep. 1, 2027.

Trending on TheStreet Roundtable:

• Cathie Wood trims Ethereum exposure on 11th anniversary
• U.S. Treasury attacks Iran's Hormuz 'extortion' network
• JPMorgan issues blunt warning on crypto's future

Russian authorities shut down 9 crypto exchanges

On Aug. 7, Russia’s Federal Security Service (FSB) announced that it, in cooperation with the Ministry of Internal Affairs, shut down nine unregistered crypto exchanges operating from Moscow’s business district for allegedly converting money stolen through scams into crypto and sending it to accounts controlled by Ukrainian coordinators.

The employees and couriers working for these exchanges could face up to 10 years in prison, the FSB said.

Related: Scott Bessent reveals fresh proof U.S. pressure on Iran is working